Electric cars will spark tax hike: Billions of pounds in new road taxes will be needed to fuel Boris Johnson's green revolution, Government admits
Billions of pounds of new road taxes will be needed to make the switch to electric cars, the Government admitted last night.
Boris Johnson yesterday unveiled plans for a 'green industrial revolution', which will ban the sale of new petrol and diesel cars from 2030.
Official documents confirmed that the tax system will evolve to ensure that 'revenue from motoring taxes keeps pace' with the expected drop off in fuel duty as people switch to electric vehicles.
The move appears to pave the way for some form of road pricing to replace the estimated 40billion in revenue generated from motoring taxes.
Whitehall sources said the move had been demanded by Chancellor Rishi Sunak, who is concerned that the shift could leave a black hole in the public finances.
The small print of the Prime Minister's ten-point plan for the environment also suggests the Treasury could bring forward incentives for people looking to buy an electric vehicle.
It says: 'As we move forward... we will need to ensure that the tax system encourages the uptake of electric vehicles and that revenue from motoring taxes keeps pace with this change, to ensure we can continue to fund the first-class public services and infrastructure that people and families across the UK expect.'
This comes as industry leaders warned that the plans to ban new petrol and diesel cars by 2030 are likely to fail.
Though supportive of a green switch, many fear the 2030 date is overly ambitious at a time when electric vehicles (EVs) account for just 0.3 per cent of cars on Britain's roads.
The bosses of BMW and Honda Europe are among senior industry figures who have criticised the ban as poorly thought-through.
In a stark sign of the challenge facing ministers, Auto Trader yesterday warned demand for EVs is already five years behind what it should be for a 2030 ban to be a success.
Director Ian Plummer said: 'The sale of EVs must overtake the sale of traditional internal combustion engine cars by 2024. But, on the current sales trajectory, this won't happen until 2029.'
Although sales are rising every month, there were only 128,819 pure EVs on the roads at the end of June – just 0.3 per cent of the 33million registered in the UK, according to the RAC Foundation.
Buyers have expressed concerns over range, around 200 miles on average, and the fact that 84 per cent of English councils have yet to install chargers on residential roads.
A third of households in Britain have no off-street parking, meaning a large proportion of the population has no access to a charge point.
Buyers have also been put off by costs. Entry-level EVs are around 5,000 more expensive than equivalent petrol models, even with the Government's 3,000 plug-in car grant taken into account.
买家也因成本问题而望而却步。即使考虑到政府提供的3000 GB插电式汽车补贴，入门级电动汽车的价格也比同等的汽油车型高出约5000 GB。
In September, the Society of Motor Manufacturers and Traders said the UK will need 507 on-street chargers every day to meet the previous 2035 deadline.
The trade body believes a full, zero-emission new car market will require 2.8million public charge points.
There are currently only 20,000 in the UK. Based on this, the Mail calculates that more than 800 electric charge points will be required every day to bring the deadline forward by five years.
Transport Secretary Grant Shapps said: 'The UK is going further and faster than any other major economy to decarbonise transport.
'Bringing forward the phase-out date could create 40,000 extra jobs by 2030, particularly in our manufacturing heartlands of the Nort East and across the Midlands, and will see emissions reductions equivalent to taking more than four million cars off the road.'